Wash Sale Rule
TaxesAn IRS rule that disallows a tax loss deduction if you buy the same or substantially identical security within 30 days.
Example
Example: On a $75,000 salary, understanding wash sale rule could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how wash sale rule works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.